Policy making for Microgrids IEEE Energy and Power Magazine 2008

As in the
economics of many traditional on-site generation projects, the economics of heat recovery and its application
by combined heat and power (CHP) systems is central to the evaluation of microgrids,

More novel is the economics
of power quality and reliability (PQR), which in microgrids can potentially be tailored to the
requirements of end uses in a manner only considered to a limited degree in utility-scale system; e.g.,
by interruptible tariff options.

The economics of microgrids arises from evaluation methods for on-site
generation from the customer perspective and from the traditional utility economics of expansion planning
from the utility perspective.

Central to public policymaking will
be consideration of the societal impact of microgrids, especially since their adoption may change
macrogrid requirements. While partially explored, this topic is still in need of rigorous analysis.

This is conceptully important justification for utility at end of pipe :

One of the central conceptual promises of microgrids is that
multiple decision-making responsibilities may be concentrated in
the hands of one agent, thereby removing one of the serious
causes of market failure in existing centralized power systems,
most clearly evident in underinvestment in energy efficient
equipment. In other words, imagine a single decision maker
being responsible for purchasing commercial energy inputs, grid
power, generator fuels, and generating equipment, and at the
same time being responsible for choosing end-use equipment,
storage technology, and potentially taking advantage of any local
opportunity fuels such as solar or a bio waste stream.


Future research : In general, past analysis of CHP has relied on
rather simplistic technical rules of thumb and inadequate consideration of the importance of complex market incentives such as time-of-use or feed-in tariffs. More specifically, microgrids bring to the fore the issues of waste-heat-driven cooling, on-site energy storage, and heterogeneous PQR, which are all relatively uncharted areas of engineering-economic analysis.

Increased requirement for cooling boosts the argumetn for local CHP to provide cooling. Very high Carbon Impact of waste heat and is growing.

Economic evaluation of electrical, thermal, or fuel storage
always poses a complex problem because of its inter-temporal. nature, i.e., the way storage is operated in any time step affects
its operation in many others, and because of the need to make
decisions despite uncertainty surrounding future circumstances.

An important aspect of microgrid economics that has minimal
evaluation methods available is local control of PQR. The tradition
in electricity supply has been one of universal standards
for PQR.

Achieving
the targets has incurred both physical and operational costs;
i.e., maintaining and improving PQR require both investment
in equipment and redundancy but also conservative operating
procedures that preclude some economic transactions, with
consequences costly to societies.

By sophisticated
local control by a microgrid, the prospect of tailoring PQR
to match the requirements of end-uses becomes a promising
source of economic gain. Note that many end-use loads need
only low PQR, and the ones that do require gourmet power
are typically small.

As mentioned above, the economics of microgrids from the
customer perspective arises out of the evaluation of on-site

and embedded generation.

the optimal
number of gas engines selected is determined
by the ratio between baseload and
peak electricity demand together with
the ratio between heat and electricity
demand. As the ratio of baseload to peak
increases, the number of gas engines
selected decreases because larger units
have higher energy conversion efficiency.

Microgeneration, located close to demand, delivers electricity
directly with limited requirement for use of the network. This
The potential benefits and costs of
integration of PV and micro CHP into
system operation and development
will be driven by a number of factors including:
! level of penetration
! density (distribution)
! correlation between generation operation patterns
and demand profiles.

PV generation is likely to reduce
losses in distribution networks. In this context, it is important
to remember that losses are a quadratic function of load, and so
most losses occur in summer daytime as this is the most heavily
loaded time for the majority of networks.

interconnection procedures
typically include technical provisions on the following:
! voltage regulation and power quality, including steadystate
voltage deviations, fast variations, flicker, harmonics,
dc injection
! power factor
! protection and anti-islanding schemes
! earthing-grounding arrangements.

In Japan, the Ministry of Economy, Trade, and Industry
(METI) has established rules and technical guidelines for grid
interconnection.Requirements
include relays, switches for protection, islanding prevention,
and communication systems.However, these
rules contain no provisions on cost bearing among parties,
which may cause problems

In 2003, after five years of development, the IEEE 1547
Standard for Interconnecting Distributed Resources with
Electric Power Systems was published with the goal of creating
a set of technical requirements that could be used by all
parties on a national basis. During IEEE 1547 development,
it was recognized that islanding parts of the distribution system,
depending on implementation, could improve reliability.

Unfortunately, the relays may activate
in the event of fluctuations caused by the
starting or stopping of large electrical equipment
during low demand periods, especially
at night. This situation has created a costly
hard constraint on operation of the microgrid.

Governance of Mega-cities and improving living standards

How can the governance of  ‘mega-cities’ improve living standards and environmental conditions in the long term? A discussion with reference to Delhi.

Interested in any peer review that people would be willing to give this article.

 

Introduction

“When you are making a plan or a policy – think of the poorest people first” (Mahatma Gandhi)

Delhi is the hub of the exponential growth story of India. Despite the global slowdown India is currently growing at 6.9%. The self perpetuated euphoria that surrounds the city was never more evident than at the Commonwealth Games in 2010 when Delhi was clearly on display. At this time there were major investments in roads and rail as well as an ongoing focus on the constrained water infrastructure[1].

Look behind this success story however, and you start to see a façade that reflect the temporary screens that hid slum dwellers during the Commonwealth Games. The other face of Delhi is one of institutionalised division and criminalisation of informality (Rao 2011), where the concept of a “slum free Delhi” (ibid) does not refer to a benevolent social welfare scheme but rather a restructuring of poverty to suit the emerging middle class. Key to this story is an understanding of how to reconcile social, economic and environmental problems within the context of an increasing social divide as well as issues around fragmented and corrupt institutions and an exploding population. 

The goal of this paper is to explore how the governance of a megacity such as Delhi can design solutions to these problems while improving living standards in the long term. I provide a detailed understanding of social, economic and environmental context of governing Delhi, of the various actors, and then look at how market, technical, capacity building, regulatory and other levers can be used to improve governance performance. I find that governance can play a vital role in improving living stands if a capacity in integration of service delivery across governance structures can be achieved.

For rest of article click below.

The Colonial Legacy - Myths and Popular Beliefs

http://india_resource.tripod.com/colonial.html

• Conflicting views as to the impact of colonial rule. Issues include literacy rates (ie that British suppressed education of the masses). 
• Significantly under financed urban infrastructure (outside of British built enclaves) 
• Contribution to creation of urban poor - living on subsistence wages . Export of agriculture/grain created famine 
• Desecration of monuments
• Extraction of financial resources via taxes funded industrial revolution in Britan and the generation of new technologies that were then sold back (India Today, Rajni Palme Dutt). Several such patents were based on techniques perfected in India. 1882 East India Company report "The importance of that immense empire to this country is rather to be estimated by the great annual addition it makes to the wealth and capital of the Kingdom.....".  British imports duties 2-4%, Indian 70%
• History of East Indian trading Company originally one of immense wealth and success for India then British protectionism then colonialisation to repatriate the wealth of the country rather than compete. 
• DH : Impacts of colonial rule today in terms of governance both in both recognising legacy of direct control and impact on creating a segregated society. 

http://voi.org/books/tlmr/ch8.htm

• India was invaded and colonised by Muslims for over six hundred years. "It took five hundred years for its establishment (712-1206) and one hundred and fifty years for its decline and fall (1707-1857)." Invaded to wipe-out existing Indian culture. 
• The Muslim period created long term social divide and has led the government to want to play the role of "integrator" of these cultures (National Integration). 

http://www.nytimes.com/2008/08/30/world/asia/30caste.html?pagewanted=2&ref=asia

http://indianchristians.in/news/content/view/311/48/

Jain,a (2009) Low carbon city

Jain,a (2009) "Low carbon city" Discovery Publishing House 

• Introduction - Av inc 2.3-4.8 deg C with climate change. Need change planning/design to low carmon and integrated approach. Need to disagregate issues by community/city/region/state/global - then integrate at policy, strategic and operational level. Need to interface regional , physical, env, transport, social,legal, magmt, financial and other (talks about factor 4).
• Move to walkable cities - 800 (m) , 10 min walk. .Simple as inc Floor space index (FSI) or FAR (Floor area ration). Shanghai 1990 2.28 road area per capita, now 12.3 sqm - green areas are 9.16. Indian megacities need to plan so that areas under circulation and social infrastructure 10 sq m per capital each.
• Env and built form - Used mandala as form for building cities origionally. Due to change, population and land speculation built form in India is ocmplex, amorphous ad chaotic. Reaching Crisis. Two key geometric systems in delhi - rectangular grid - government buildigs, and hexoganal is local/residential.
• 15 - Delhi- priorities for he environment -  First ever Statutory Master Plan (1962) with focus on phsical environment conducive for social-economic growth, health and saftey befitting capital. Unforutnately Delhi is one of the most polluted cities in the world now 5 million veichles. RUnnig out of land water, power and air. Nex master plan MDP 2021 underlines importance of enviro conservation including of the ridge annd river Yumana.  Several important interventions of supreme and high couts - banning mining, quarrying and bring manufacturing (1992), shifting non-conforming, hazardous and noxious indistruies from urban area (1996), removing 15 yo commercial vehichles, shifiting non conforming uses of ridge, banning parks for marriage.
• Significant population growth ->pressure on land  housing transport. 60% of land area urbanised.  Trend of unauthorise colonisation and commercialisation of rural lands including farm houses for banquests, marriages, offices etc. 
• Water - delhi can onl ful half of the 1200 mg of water it needs. Need to conserve water, harvest rainwater, treat it, and recycle. ALso need to regenerate River Yamuna.
• Need to upgrade sewage and drainage plants, explore energy from sewage, decetralise for local treatment, and mandatory recycyling of waste water in large industry.
• Solid waste - .6 kg per capital per day - 6-7000 metric tons per day - most disposed off in open drains parks, sanitary land fills. Options - community pariticpation, recyling, involing NGO's in programs, energy from waste, seperatation of orgaic and inorganic.
• Transportation - Mostly road based with Ring an radial pattern of roads.MRTS was approve din 1996 and 2005 netwek of 11 km of underground metro and 44 above rail corridors and 45 stations.
• Green space - lucky to hav 20% of  urban area of greenery. Unique feature of delhi is ridge the rocky outcrop of Aravali ranges which is protected.
• Management and capacity building - Need effective institutionanla structures and systems for integrated planning, development and enforcement. Soutions lie outside borders oten so alos need integrated regional plan, NCR (National Capital Region) plan and Delhi Master plan. Can also collaborate with state government/local bodoes for takin gup decentralisation projects suhcas wholesale trade, industries, public undertakings, government offices, housing etc. Environment management should deveail urban planning and development, revenue generation, acton planning, institutional capacity building, multi-year programs and tech upgrades. Multi-sector investment program (MSIP) and physical and environment development plans (PEDP) should constitute planning - and link to community projects and have regulator provision to facilitate involvement of NGO and private sectors. Multi-year investment planning should match priorities of he sate budget 5 year plans. Neworking wiht international and national env programs - Urban ENvironment management program (World Bank/UN), Citynet, Healthy cities (WHO, UMP etc)
• Urban landscape and ecology - Regional setting of of Delhi has benefits that are worth protechning in terms of geomorphological identity. Delhi was planned geometrically by Lutyen
• Delhi Biodiversity -  Delhi is bounded by forests by and filled with gardens. 10.2% of Delhi geographical area has forest and tree cover. 14 city forests. Ridge if charachterised biotropical thorny secoday forest known as rakes or an arid open scrub forest.  Bulk co-dominant spinous scrubs and tress. Ground thorn season **Bansa has medicinal value.  Ridge critical for assimilation of gas pollutants, ground water recharge, prevention of erosion and siltation, bio-diersity, recreation. There is a triangle of The Yamuna dn Hindon reivers and the tail end of the Aravalil range that form traiangular plain - which has been ccradle of ruling dynasties.  A committeee was established to manage the ridge (Lovraj Committee).  Have been some rulings such sa one against stone crushers to enforce Delhi Development Act.  New Master plan 2021 emphasises sustainability. In addition with pop set to hit 23 mil with 100,000 industries -> degredation of ecologiy. E.g native medicinal herbas that grew roadside have disapeard.  Green cover of ridge -> mono culture and of 444 species of birds 107 under severe pressure. Looking to set up Yamuna Bio-diversity Park to repair and replicate ecosystems and preserve species, promote education, and ecotourism .
• Making Delhi a low Carbon City - Delhi one of largest and most polluted cities in the workd 50% of 1483 sqm km's urbanised. Need to continue integrate approach.  Three key approaches need to be adopted - (a) Management of natural resources, conservation and development of natura resources, development an preservation of open spaces, greeens and landcape.
• Water - Surface water includes River Yamuna, drains and lakes and ponods.  Aquifiers  occur up to 70m depth. Yamuna highly polluted, water is ineqitably distributed, capacity to treat waste water deficient.Annual raiwater harvesting potential estimated at 900 billion litres
• Buses constitute 60% of transport load while perseonal veichles (93% of the veichles) only to 30% of demand -> huge congestion road spaces and parking issues. Air pollution can be solved only through public transport.
• Solid waste management reaching serious proportions. Waste from unquthorised developments, slums, JJ settlements not collected -> degredation. Av garbage collection by year 2021 is 68 kg per capital per day.  Where sewage not provided can do on household and local basis with distributed effluent treatment plants.
• Recycling and regeneration are critical - recycling of water, solid waste, land regeneration , recharging (traditional areas) and rejuvenation (ricver, water bodies , parks etc).
• Technology upgradation - Revival if watersged development, harvesting and conservation of rain water and resolve water crisis. Tech such as decentralized water treatment, solar/aerobic oidation and root zone cleaning systems can be employed to purify potable water. Exisitn tech needs to be re-assessed wiht reference to env, hygiene and accesiblility and alternatives such as extended areation, biogas, bubble diffusion, flotation, anearobic reactors.

Are mega-cities viable? A cautionary tale from Mexico"

Ezcurra, E and Mazari-Hriart, M (1996)  “Are mega cities viable ? A cautionary tale from Mexico - -Environment; Jan 1996; 38, 1; ABI/INFORM Global

• Centralism is the new trend as is megalopolis. Not clear of environmental impacts. Inverse relationship between GNP and pop growth. Resource shortages, air,water, energy, food supply and contamination all critical issues. Mexico is an ongoing experiment where conclusions yet to be drawn. The growth of the basin of Mexico is main concern. 18 million occupying same area. Forshadowings ominous for some. Environmental crisis situation would be from exhaustion of water, degredation of air, silting of drainage, and citywide flooding due to deforestation.
• Environmental setting -  Mexico is set in a hydrologic basin which was artificially opened in 1600’s. Before human transformations nine major environmental zones. Little of the original ecosystems remains. City has overtaken former lakebeds which have been progressively drained.
• Population and land use – exact numbers have been debated. Some say 15 (m) however last census in 1990.     Has traditionally been one of the most densely populated areas with estimates of 17.3 (m) in 1995. There has been an ongoing phase of merging of municipalities – now Mexico city (16 delegociones and 26 municipalities), Toluca (six municipalities), Puebla (8 municipalities) , Cuernavaca-Temixo, Jiutepec and Cuaula-Yautepec (aggresgation of smaller municipaities). Mexico City formed a megalopolis by merging with Tolouca and Cuernavaca.  As it expanded -> greater density, less planned, less open space.  Often built on hillsides -> erosion and flash flooding. Agro-pastoral fields dissapearigng @ 7.4% per annum. Parks and private spaces at 1.4%. East area fastest dec. Rates of dec effected by social class of inhabitants.
• Water supply -  Current water use is 63 m3/s17 . of this volume only 1.7 m       3/s comes from surviving surface water systems. 42 m3/s fro aquifiers and remaing from Lerma and Catzamala basins. Leakage may -> up to 25%. Recharge replaces roughly 50% per year only. Early in the century Mexico City started sinking due to over-exploitation -> ban on new wells -> stabilisation. A number of areas have been pinpointed for dissemination of contaminants.    Transition zones between hillsides and clay bottom of the basin are highly permeable -> contaminants migrated to aquifiers. Bacteriological, physical, and chem. Monitoring has show dec in quality due to over-extraction of groundwater and extraction of water from formations with high concentrations of certain ions.
• Wastewater treatment – Contemporary wastewater system in Mexico includes several unlined sewer canals, sewers , reservoirs,pumping stations and a deep drainage system – 75% of pop rest use septic tanks.90% of industrial wastes are discharged untreated into domestic waste. 27 treatment plants -> 7% of sewage and then -> irrigation.
• Air Quality – Air pollution problem for over 20 years. Particularly bad in cold season. Mostly from cars. Ozone was highest in 1994,lead was before that in 1986. While unleaded petrol was introduced, the substitute added to the ozone issue – and Mexico is now double what it should b e -> damage to all urban vegetation. In 1994 ozone was at a level considered hazardous for 94 days. Also suspended particles and sulfer dioxide in  industrial parts in central parts carbon monoxide is intense. Also > acid rain and impact on natural areas surrounding the city.
• Centralism and ecological subsidies – Few areas are so far from being self sufficient. Through rapid growth, therefore many issues are exported through system of ecological subsidies -> ie water shortages, contamination. Cost of supplying water to city is enormous. Elevating one cubic meter of water 10 m requires 98 kilojoules of energy plus mechanical efficiency of the system -> For 370 MW are needed -> $900K per day. Transport, water heavily subsidies as are the health side effects of pollution and costs on surrounding forests and crops.
• Sustainability problems and government responses -  Water quality and availability increasingly important issues. The many issues discussed here -> establishment of Sub secretariat of env protection in 1972.  In 1992 there was an explosion in a sewer due to untreated fuel being pumped into pipe. Fed env admin was then split in two –Institute for ecology which would draft legislation and co-ordiate usage and a Env attorney general who would enforce. Also commission for air protection
• Insights for the future – Industrial dev not solely to blame. Centralised govt in place since Aztecs. Has been most densely populated area in world for much of the last two millennia -> political advantage/competitive advantage.

Globalisation: Countries, Cities and Multinationals

Globalisation: Countries, Cities and Multinationals

Philip McCann 1  and Zoltan J. Acs 2

• Explores whether in todays globalised economy is the scale of a firm, a nation , or a city more important? Argues that interenational business, institutional economics, and economic geography sit uneasily. Also believes there is a relationship between importance of scale of country and scale of cities in a country, and scale of city cant be informed without scale of firms within the city.
• Size of nations : Alesina and Spolaore (2005) argues that the size of country depends on a trade-off between the benefits of size versus the costs of heterogeneity. Benefits include efficiency in infrastructure provision, leverage of public service. Preference hetrogenity relates to local variations in culture, language  ethicity etc. This argument -> the greater democratisation -> fragmentation. There is much support for these arguments, however alternate view is that it is more complex as (a) many very small countries are very poor (b) almost all very large countries are very large enabling them to large home market and aglomeration effects (c) This is an institutional view of nations whereas modern geography emphasises issue of link with home market size and size of cities
• Cities and Urbanisation – From 17^th century to early 20^th cities were engines of trade, resource acquisition, and development characterised by increasing industrialisation, globalisation, urbanisation, trade and eco growth. At this time relationship between urban scale and wealth was straight forward. During war – went to colonial networks and decrease in globalisation. After war accelerated again – particularly developing nations. Today the majority of the worlds largest cities are no longer in the most productive economies but the worlds most productive cities are located in the most productive economies. The worlds most “productive cities” are not mega-cities. Weak statistical link between productivity and size. The productivity advantages associated with urban scale appear to be relatively more important for lower income than for rich countries. Yet it is noted that other attributes are equally important – centres of knowledge, creativity and innovation.
• Multinationals, FDI and eco integration – Evidence is now that multinationals play singificant role outside national or colonial structures. Easier for MNC to engage in cross border trade within their own company. Over time drivers such as the internet has -> exponential rise in MNC’s. in 1960 there were 7000, in 2006 there were 78,000.  The role played by the very largest of these MNC’s is unparalleled in history. The importance of these firms to knowledge generation. Geography of these processes are much more regional than global. Location decisions of these firms critical to why some locations are knowledge centres. Proximity to hub airports correlation with productivity. Correspondance between centres of commerce, global finance, and productivity. Aitken (1979)  found that proximity to multinationals increases propensity to export.
• So is scale of economy, cities or firms important – (a) Temporal aspect –c haing over time. From high correlation between size, to colonilsation, to less correlation – mid sized more productive, not mega-cities. (b) global connectivity of cities is more important than scale. In a world of falling trade barriers – transaction costs for low knowledge activities and rising spatial transaction costs for high knowledge activities – connecetivity is critical. Modern tasport and communications -> performance of city regions ost important which in tern depends on connectivity, global engagement and competitive performance of its MNC’s. There is a minimum threshold to have required infrastructure for connnectivity – around 1.5 (m). For MNC's there is increasing importance of regionalism as proximity, trade, FDI, Bilateral Investment treaties (BITs) and Double taxation treaties (DTTs) (http://issrb.ru/content/program/Investments.pdf) . Believes that Krugmans (world bank 2009) emphasis on home market and agglomeration effects applied accross super-regional areas of integration built around global cities more realistic than smallness arguments of Alesina and Spoaore (2005).
• Understanding of relationship between nation-state, city-region, and multinational firm  in which globalisation processes operate is poor and needs greater behavioural analysis

DEVELOPMENT AS LOCALIZATION : Ethnic minorities in China

V. Elena Barabantseva  (2009) “DEVELOPMENT AS LOCALIZATION :

Ethnic Minorities in China’s Official Discourse on the Western Development Project”

http://dx.doi.org/10.1080/14672710902809393

• China presenting itself as having ambitious socio economic construction. Its Western Development Project (WDP) shows interdependence between development and ethnicity. WDP has had enthnicity ascribed to it as well as unequal regional development, increased security concerns, unequal development. These type of discourse prevents minorities from being fully participants in the transformation.
• Expansion in China took new meaning under Deng Xiaoping (1978). This essay looks at how ethnic minorities The WDP was a strategy to address the difference in development in East and West. The right to development is related to population quality which designates higher value. China also advocated humanistic modernisation        where all chinese should work for the benefits of China’s modernization aims. In this wider context WDP aims to make ethnic minorities accomplished citizens. Approached used is “discourse analysis” -> which focuses on discursive production of knowledge presented as truth. He wants to uncover established order of discursive formation by uncovering what underlies it and makes it possible. Pays attention to exclusions, hyrachies, limitations, and stereotypes that fix the discourse as natural.  He contents that ethnic minorities remain on the margins. Localising ethnic minorities blocks them as being recognised as modern citizens participating fully in economic transformations .
• Modernisation, Citizenship and localisation -  Key goals for growth – Deng (Seek truths from facts) , Jiang Zemins (Three represents) and Hu Jintao’s (build a harmonious society) – prioritised different aspects of society. Den was green light to capitalism, Hu saw balanced and more scientific development including bringing development to country side and western side. Aims based on Mao’s goals to build a well off society by 2020 and modernisation complete by 2050. Economic development has been the core driver with GDP the KPI, the level of participation in this goal demarcates citizenship. In china ethnicity is stamped in documents and dictates range of rights and entitlements – minorities have more relaxed one child policy and certain educational privilages – but there are designated ethnic areas. China’s leaders maintain particularities of localization through cultures and social practices. Those with localized identities find it hard to participate.
• Offical perspectives on WDP – Jiang Zemin proposed the dev of West in 1999. Deng had though of developing the east and then dragging through the West. It didn’t work and exacerbated regional differences. WDP has no single policy document. It is really an aspiration goal, around infrastructure, attract investment, and to a lesser extent promote social engineering and environmental initiatives. Twenty airports, diversion of natural gas and electricity, highways, rail, and water conservation projects. Clearly have short term eco benefits however not sure if they will -> integration of east/west. Reason for projects in WDP is to develop productive forces in minority region and provide jobs however labour inc comes from east. (some thought this was a good thing to upskill west). Idea was that the west would be led by higher order culture of east. Tourism was presented as major touchstones for the west however many argue that this presents a “exotic and traditional China”. Wilk argues “difference is built upon temporal rhythms, spatial hyrachies, and essentialised age and gender”. There is something homogenising in how minority difference is articulated. An important goal articulated in the WDP is an attempt to pacify (for example Tibet). Addressing security concerns has been urgent.
• The ethnic character of the WDP – Ethnic policies are important.  Was always positioned as something that would narrow the development gap. When WDP was established there were changes to law on regional national autonomy (LRNA) to ensure that state provided assistance to autonomous ethnic minorities rather than assisting them to modernise. Revised -> confirmation of central government role in regulating every aspect of life. Govt sponsored set of essays by scholars on ethnic issues and then by officials looking at this area. Li suggested that inequalities were the main restriction to resolution of the ethnic question. Fei Xiaotong (famous anthro) suggestest WDP is second key act in formation of China’s minority work – allows minorities to develop their own culture. Another topic often comment on is the difference in mentality between east and west – west is encouraged to open up to socialist market eco. Zhou Zian suggests that traditional mentality is main obstacle to growth.
• How ethnic is China’s West?  To many the main characterisation of West is its ethnicity. 46 out of 55 ethnic minorities. Many ethnic groups inhabit east however – ethnic groups in all developed areas. In 1990 24 million ethnic minorities did not live in autonomous areas and majority Han has been inflltrating West since 1950’s.. Even in predominanty minority areas  the Han majority predominates. Therefore this type of labelling creates an artificial concept of ethnic minorities with associated derogatory characterists. Also GDP evidence does not support concept that it is the least developed area – particularly when looking at GDP per capita figures. Makes you wonder if eco dev was primary motive. Income disparity hs been fixed as a norm by official sources. Many poor areas in Han dominated areas. This characterisation -> state sponsored subsidisation. Share of foreign capital has been insignificant (1.62% vs 86% in east).

Localisation, ethnicity, and citizenship – Some refer to the West as the wellsprint of culture, others the cradle of Chinese civilisation. Yet official and scholarly language reflects more economic incentives and consolidation of power. Ethic minorities are construed as “problematic” with differences -> conflict. They are assigned a denigrated position in development and seen as not engaged with modernisation (a fact that is statistically incorrect). The state encouraged transnational ties with minorities as part of WDP – did not always work out.